A Comprehensive Report on BMW's Organisational Strategy and Analysis

This report provides a comprehensive analysis of BMW's organisational strategy. It begins by examining the macro-environmental factors influencing BMW, including political, economic, social, environmental, legal, and technological aspects. The report then delves into BMW's industry position, including market segmentation, targeting, and positioning within the automotive sector. It assesses BMW's internal resources and capabilities, including its global presence, innovation, and workforce, using a SWOT analysis to highlight strengths, weaknesses, opportunities, and threats. Finally, the report explores the perspectives of key stakeholders, including customers and employees. The analysis covers various aspects of BMW's operations, from its response to environmental concerns to its competitive positioning in the premium car market, offering insights into the company's strategic approach.

Organisational
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
Macro environment factors of BMW...............................................................................................3
Industry position:.............................................................................................................................5
Internal resources and capabilities:..................................................................................................6
Stakeholders perspective:.................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Organisational strategy refers to collection of actions taken by an organisation to achieve
long term goals and objectives. These steps and actions make strategic plans and policies of
organisation and it takes a year to accomplish or complete and requires involvement at every
level in hierarchy in which top level management plans and creates organisational strategies for
long duration on other hand middle and lower level management follows plans and policies to
achieve organisational goals and objectives. Organisation strategies change time to time because
strategies are dynamic in nature while goals and mission remain same in organisational
development. So strategy should be build after evaluation of many aspects such as goals and
missions, future plans, capabilities of organisation and many other things. This report based on
BMW which is part of auto mobile industry and commonly known as Bavarian Motor works. It
is German auto mobile which manufactures motorcycle, engine and cars, founded in 1916 and its
headquarter is in Munich, Bavaria. This report study upon main aspects of BMW included Macro
aspects that influences proceedings of organisation, position of industry and its resources with
capabilities etc..
Macro environment factors of BMW
Macro environment consist of factors or forces that influence on overall health of
organisation (Burgess and Radnor, 2013). Macro environment in which an organisation operates
and according to them enterprise have to build plans and strategies while expand its market
share. In that milieu consist of many factors and these are as follows in context of BMW.
Political Factors:
In Micro environment of business first and foremost factor is politics that directly and
indirectly affect proceedings of work behaviour. The law which affect BMW is enforcement law
related to Co2 erosion. Recycling of products also a major factor which affects business of firm.
In that scenario it has political stability that impacts on its investment otherwise it is subject of
risk (Eason, 2014). There are some other factors such as Tax burden and risk of forthcoming
riots and disagreements that influence adversely on buying patterns of consumers in
organisation.
Economic factors:
Factors that influence proceedings of business in economic consist of fluctuations in
GDP, customer spending power, credit terms, inflation rate are different factors which affect

works of BMW in current scenario. While deal with other countries they face problem of
exchange rate in currency. Differences in global rates affects behaviours and buying patterns of
consumers in BMW.
Social factors:
Social factors influence taste and preferences of consumers in BMW as change in
demography and culture of people that is consumers of organisation. Change in tastes and
preferences affect buying patterns of consumers (Estampe and et.al ., 2013). Economic condition
directly affects consumer perception and vehicles in which car become a status symbol of people
that also fuel efficient. Economic changes such as recession in economy directly affects buying
patterns of consumers but BMW is efficient enough to eradicate inadequacy.
Environmental factors:
In environment consist of weather and climate which directly influence business and its
workings and climate majorly affect some businesses such as insurance, travel and tourism and
farming industry. The main concern of BMW to protect environment and problems related to
recycling body or materials of vehicles (Jensen, 2017). Now people more aware about eco
friendly vehicles that are fuel efficient and not produce harmful gases. So main focus towards
producing hybrid cars and techno oriented vehicles.
Legal factors:
In legal factors consist of laws and regulations which directly and indirectly affect
business in US and European market of BMW. There are several implications which influence
its business proceedings by setting Euro standards in both developing and developed nations.
Laws and regulations play a major role in business environment to grab attention of consumers
to pace with legal regulations.
Technological factors:
In technological factors consist of adopt relevant and updated technology to save time
and cost to satisfy consumer needs and wants properly. In that scenario while operating in
different countries they have to adopt relevant technologies and at that time BMW have to
increase in technological orientation to beat its competitors. Avail modern design to eliminate
margin gaps in auto mobile industry and relevant adaptations to reduce pollution by vehicles.
Macro environment analysis helps to organisation to eliminate factors that effect organisation
while deals in international market in that majorly above factors include. These factors gives

description that by eradicate effects of these factors desirable results should be achieve and large
market should be achieve in effective manner. Hence all these factors shows organisation
capabilities and key strength areas to lead in market.
Industry position:
To understand industry and its key factor there is need to segment, position and target
market for that market have to summarise in proper manner.
Segmentation of Auto mobile industry:
In today's scenario there is need to divide market by different factors such as
demography, parapsychological and behavioural factors. By these marketing tool proper
segment of market and consumer choice and preferences should be acquire. So these factors are
very beneficial for every organisation to get right customer base (Kohtamäki and et.al., 2012).
Segmentation consist of to grab large market share according to products and their services. The
market base of BMW is Mid age people between the age of 35-50 and high income group
people. Masses who are brand conscious and brings innovation in their products and services.
The segment of BMW class that wants superior goods and services, reliability and royalty in
their goods and services.
Targeting of BMW:
Targeting means after analysing products features and break into segments and apply
their efforts for some customers base that taste and preferences should match with products and
services. It helps to industry to grab the right customer segment according so that they become
fully satisfied. Target market of BMW consist of people who belongs from the upper class for
them BMW are affordable for them (Minonne and Turner, 2012). BMW position itself as a
emblem of quality, loyalty and technological advance and innovative enough in auto mobile
industry. That company uses different factors while position and target its market base such as
age, class and lifestyle of people are important factors that should be consider.
Positioning:
Positioning is the last stage after segmentation and targeting market. In that involves
selection of right marketing mix that helps in chosen in target market so that effective results
should be achieve. That company uses mono segment type of positioning system in that it only
connect with single customer base. In its positioning consist of to target only those customer who

easily afford expensive cars at premium price level. BMW not provides budget vehicle to their
customers means it is not included in their budget portfolio and people who have low budget.
Internal resources and capabilities:
In capabilities and resources of BMW consist of its manpower, technology and other
factors that work it as a strength for it. In its strength consist of it has in present assembly
facilities in 14 countries and global sales network in many places (Nankervis and et.al ., 2016). It
is a premium manufacturer of auto mobile in world wide and provides financial with mobility
services to their customers. It is a hub of innovation and in production technology to provide
sustainability. It shifts its products in segment of digitalisation and resource efficient
manufacturing. It comprise an effective value chain so that it give fruitful results.
SWOT of BMW:
BMW is one of the best cars across world that is popular for its quality and design. That
brand is famous for adaptation and ultra premium cars which is made for rich class group(Ryan
and Wilson, 2013). There is SWOT analysis of BMW group:
Strengths of BMW:
There are many points and features that make it market leader such as:
Illustration 1: segmentation, targeting and positioning model
(source :segmentation, targeting and positioning, 2018)

BMW group:
BMW group is very famous brand in world wide due to its quality and loyalty also. It
supplies three brands in which includes BMW, Mini and Rolls Royce and all these cars are of
premium segment. It is not only known for its cars but also for it motorcycles, engines of aircraft
and engines of marines that helps to being a leader in world.
Innovation with technological advancement:
BMW majorly focus on innovation and advance technology that is key aspect to become
a market leader in world. It spends a lot of money on research and development to improve in its
quality (Taylor, Doherty and McGraw, 2015). It innovate time to time in design of cars so that it
always remain centre of attraction for customers.
Renowned brand:
To reach at their potential consumers it avails advertisement and promotion of their
products and services by effective position. In today fierce competitive world it reach at potential
consumers by marketing campaigns.
Workforce:
Manpower is an important factor that helps to beat their rivals which is highly skilled and
adaptive to change. In organisation there is approximately 100000+ most skilled labour force
that works world wide to frame effective products for their customers (Wilkins and Huisman,
2012).
Weaknesses:
Cars recalled:
BMW suffer from the technical mistakes that occurs in their cars it degrade its product
image and avoidance of government rules and regulations impacts on its image before its
consumers. In recent it recall its 1.6 approximately cars due to technical mistake in their airbags.
Brand consciousness:
Most consumers of BMW belongs from young age people that now wants to spend their
money on electronic goods rather than premium cars.
Opportunities:
Product portfolio:

Cars of BMW introducing new series of vehicles that helps to increase their sales in
different markets so that they cover large market share. When consumers get high variety of
vehicles they show their interest in their products and services that enhance their brand image.
Changing lifestyle:
In that competitive world consumers become more conscious and wants changes in
product and services for that BMW provides different series in their vehicles. That directly and
indirectly beneficial for organisation to improve their customer base.
Threats:
Fierce competition:
Most threat for company that other premium car providers gives features in
comparatively in less price to their customer to drag customer towards them. Other cars
providers organisation such as Audi give fierce competition to them ( Estampe and et.al ., 2013).
Price factor:
consumers now become more price conscious and spend their money on electronic goods
rather than cars so that it become hazardous for BMW to get high profit.
So all these factors help to organisation to evaluate their key areas in which they have to amend
and gain competitive advantage so that large market share should be accomplish. BMW have to
avail strengths of them to gain share of market and minimize threats that stands before it so that
risk should be eliminated and competitive advantage should be gain.
Demand of autonomous products:
Changes in customer needs and wants influences its works and dealings. Today consumer
become more aware and want e co friendly products in which includes non fuel cars and
effective engine cars that consume less oil and give benefit to both consumers and environment
also.
Stakeholders perspective:
In stakeholders perspectives includes opinions and views of different people in that
includes customers, employees, investors, creditors and society which directly and indirectly
influence business proceedings.
Customer's:
BMW's first priority stakeholders is their customers. Main motive of these stakeholders is
to high quality products and services, also after sale services. Customer's are most significant

factor that determine organisations revenue. Company invest its money on CSR activities and
continues innovation in products regarding quality, fuel and safety measures in their product so
that they fully satisfy their needs and wants.
Employees:
Employees is an important factor for any organisation to give their best to organisational
development and its enhancement. Main factor of that stakeholder is to provide career
development, wages in right manner, fair opportunities (Burgess and Radnor, 2013). They
influence in organisational production and services enhancement. Organisation have to focus on
different aspects of that stakeholder in differ areas in that includes sustainability, training and
development, and leadership development programs for employees so that they feel motivated.
Investors:
Investors are important stakeholders for business that interested in profits and stability in
business. Investors are significant for BMW because they influence capital of them. Aim of
company to minimize cost and increase their profitability so that they can take care of their
investors and give their best in development and enhancement. So all these factors helps to gain
their targets and objectives to increase their market share and profitability in market sphere. All
investors have different contribution in organisation to complete their whole objectives and firm
have to take care of their needs and wants so that they give their best and become satisfy.
CONCLUSION
From the above report it has been concluded that strategies play a major role in
organisational development and its enhancement. Strategies shows competitive strength of
organisation and give path to employees on which they have to move to achieve their objectives.
In perspective of BMW it take many advantages and also challenges by macro environment.
With its strategies regarding segment of market, positioning and targeting which play a major
role in target the right market and helps to acquire capabilities and their future expansion plans in
present scenario. It elaborates stakeholders and their contribution in organisational development
and its growth.

REFERENCES
Books and journals:
Burgess, N. and Radnor, Z., 2013. Evaluating Lean in healthcare. International journal of health
care quality assurance. 26(3). pp.220-235.
Eason, K.D., 2014. Information technology and organisational change. CRC Press.
Estampe, D.,and et.al ., 2013. A framework for analysing supply chain performance evaluation
models. International Journal of Production Economics. 142(2). pp.247-258.
Jensen, M.C., 2017. Value maximisation, stakeholder theory and the corporate objective
function. In Unfolding stakeholder thinking (pp. 65-84). Routledge.
Kohtamäki, M., and et.al., 2012. The role of personnel commitment to strategy implementation
and organisational learning within the relationship between strategic planning and
company performance. International Journal of Entrepreneurial Behavior & Research.
18(2). pp.159-178.
Minonne, C. and Turner, G., 2012. Business process management—are you ready for the future?.
Knowledge and Process Management. 19(3). pp.111-120.
Nankervis, A.R.,and et.al ., 2016. Human resource management: strategy and practice. Cengage
AU.
Ryan, B. and Wilson, J. R., 2013. Ergonomics in the development and implementation of
organisational strategy for sustainability. Ergonomics. 56(3). pp.541-555.
Taylor, T., Doherty, A. and McGraw, P., 2015. Managing people in sport organizations. Taylor
& Francis.
Wilkins, S. and Huisman, J., 2012. The international branch campus as transnational strategy in
higher education. Higher education. 64(5). pp.627-645.
Online
Segmentation, Targeting and Positioning (STP) Model 2018
[Online]. Avalilable through:<http://dimitriosgogos.me/segmentation-targeting-and-positioning-
stp-model/>.